§ LORD JACQUESMy Lords, I beg leave to ask the first Question which stands in my name on the Order Paper.
§ [The Question was as follows:
§ To ask Her Majesty's Government whether it is their policy by selective employment tax and investment grants to encourage warehousing at the point of manufacture, when in such trades 322 as grocery, drawing supplies from many manufacturers, there is usually more efficient distribution when the warehousing is done by the wholesaler or multiple retailer.]
§ LORD BESWICKMy Lords, the Government's policy is to encourage greater efficiency in industries which bear S.E.T. While it is necessary to await the outcome of the Reddaway Inquiry before coming to final conclusions, the evidence so far available is that S.E.T. has contributed to increased productivity.
§ LORD JACQUESMy Lords, I thank the noble Lord for his Answer. May I ask whether he would be prepared to receive evidence that what is suggested in the Question has taken place and is taking place as a result of S.E.T.?
§ LORD BESWICKMy Lords, I would say that it would be an imprudent action on the part of any company to make, in advance of the recommendations in the Reddaway Report, the sort of significant changes that are referred to in the Question. But, of course, if my noble friend has any evidence (he is in a very good position to know what is going on) and will let me have it I will certainly see that it is considered.
§ LORD STRATHCLYDEMy Lords, is the noble Lord saying that there has been an overall increase in productivity in all manufacturing and trading work, or is he saying that in some cases there has been an increase in productivity?
§ LORD BESWICKMy Lords, I am saying that in this tax-bearing sector there is evidence of increased productivity related to this tax.